Networks of Debt, Risk and Investment Among Black Land Purchasers in Early 20Th Century Transvaal

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Networks of Debt, Risk and Investment Among Black Land Purchasers in Early 20Th Century Transvaal 1 DRAFT: Please do not cite or circulate Buying Land on Credit: Networks of debt, risk and investment among black land purchasers in early 20th Century Transvaal ‘As the great classicist Moses Finley often liked to say, in the ancient world, all revolutionary movements had a single program: “Cancel the debts and redistribute the land.”’ – David Graeber, Debt - Updated and Expanded: The First 5,000 Years (Brooklyn: Melville House, 2014), p. 39. Debt cancellation and land redistribution were not just demands of revolutionary movements in ancient times. In South Africa redistribution of land is at the heart of contemporary activism, enlivened by recent moves towards a new Expropriation Bill. But two of the questions currently missing from public debate about expropriation in South Africa are: who will own the land when it is redistributed and where will they get the funds to implement the plans they have for that land? These questions are also key to resolving the problems in collective land holding entities developed for land reform, like Communal Property Associations and Community Trusts. Ownership of land and access to credit are often overlooked not only in present land reform debates, but also in histories of land acquisition and land struggle. My PhD on a history of collective property ownership in South Africa, between 1900 and 1994, aims to tackle this oversight. By tracking the arc of black South Africans’ engagements with property law and the making of communities in rural Mpumalanga, I intend to reconstruct a history of practices and intellectual traditions that black farmers developed around collective property ownership. Doing so offers insight into the alternatives that people developed to the limiting conceptualizations of property entrenched during the apartheid period. The reified notions of property recognized by the state were often expressed as a binary of communal land under chiefs versus individual title deeds. This paper explores how black South Africans navigated credit networks in order to invest in land-buying syndicates (companies made up of a group of land buyers) in the early 20th Century. Credit is key to understanding how people ‘made’ and continue to ‘make’ property. Farmers’ attempts to carve out forms of collective property are strongly intertwined with questions of belonging and identity, and the making of political and economic communities. My paper focuses on the settlements 2 DRAFT: Please do not cite or circulate of Driefontein and Daggakraal, near Ermelo, as a case study. In 1912, black farmers from around the country came to Driefontein and Daggakraal in the Wakkerstroom district of the then Transvaal to buy into a collective property scheme. The scheme was set up by the Native Farmers Association (NFA), a company established by ANC founder Pixley ka Seme. In this paper, I look particularly at a group of land buyers who arrived in Daggakraal from Harrismith in the Free State. They formed a syndicate of their own within the broader NFA syndicate. In doing so they infused the NFA with land practices and credit networks drawn from their experiences as sharecroppers, preceding the NFA’s formal existence. My research on the issue of credit is still in progress and this paper serves as the basis for one of my PhD chapters. In an earlier chapter, I will explain how families and groups came together to buy into Seme’s scheme – but in the process, did not necessarily buy into the vision of community and property that Seme advanced. I argue that NFA land buyers contested Seme’s argument that a self-sufficient black community should be built on a foundation of individual land rights and respect for traditional leaders. They tried to squeeze their own forms of collective property ownership into the narrow forms established by state and other major players like Seme. How land buyers navigated credit networks and risk factors to acquire, hold onto, defend and manage land is a key part of this story about property. Understanding how credit worked for land buyers offers insight into the political economy of land in early 20th century South Africa. Although some syndicates tried to pool resources in ways resembling mutual aid or co-operation, they came up against the long arm of finance capital and land speculators, and had to adapt to meet this reality. ** In the 19th century, some black people living in the Cape and Natal (both British territories) were legally allowed to buy land. Land purchase by black people was outlawed in most of the Boer republics, including the Orange Free State.1 Land could 1 Tim Keegan, Rural Transformations in Industrialising South Africa. The Southern Highveld to I914 (Johannesburg, 1986), pp. 85-86. Note to Reader: I’m still in the process of finalizing the references, so please forgive errors and shorthand. 3 DRAFT: Please do not cite or circulate be granted to black people for services to the Boer republic.2 Stuurman’s location is one example of this. It is a piece of land next to Driefontein, and is now known as KwaNgema. In most of the Transvaal the situation was slightly different. The 1881 Pretoria Convention made land purchase possible but only through a trusteeship system.3 Black individuals or groups would pay for land via a white-owned institution or white individual (often a mission station, lawyer or politician). When the British took over the Transvaal after the South African War, government administrators accepted some purchases made in the name of a “tribe”, with the chief as the sub- trustee, and the Native Commissioner as the main trustee. Both the Bakgatla and Bafokeng followed this land acquisition route, initially acquiring property under the names of missionaries and later as a “tribal trust.”4 The legal landscape changed in 1905, when Minister Edward Tsewu of the African Methodist Episcopal (AME) Church won a case in the Transvaal Supreme Court, which made it possible for black people to register land in their own names. Tsewu’s victory meant that after 1905 and before the notorious 1913 Land Act, black land buyers in Transvaal were limited less by law, and more by whether they had the funds and connections to acquire land. Hence the story of credit access and property ownership becomes intertwined. Those who were able to buy land were usually of high class and status, relative to other black South Africans. In both urban areas like Evaton and rural areas like Driefontein, the land buyers tended to come from two backgrounds: mission-educated intellectuals and theologians from Natal, and wealthy share-croppers from Free State and the Transvaal. The majority of black South Africans could not afford to buy land and so they lived as rent-payers on land legally owned by white companies, individuals and the government (Crown land and the reserves, later Bantustans). This was the lot of black farmers in Tenbosch, also in the Transvaal province.5 Since they did not hold title deeds, their rights to land went unrecognized by the formal legal system. They were therefore even more vulnerable to eviction than land buyers, and it is only since 1994, that South Africa’s legal 2 Ibid, pp. 76-77. 3 Harvey M. Feinberg, Our Land, Our Life, Our Future: Black South African Challenges to Territorial Segregation, 1913-1948 (Pretoria, South Africa: Unisa Press, 2015). 4 Gavin Capps, “Tribal-Landed Property: The Value of the Chieftaincy in Contemporary Africa,” Journal of Agrarian Change 16, no. 3 (July 1, 2016): 452–77; Bernard Mbenga and Andrew Manson, People of the Dew: A History of the Bafokeng of Rustenburg District, South Africa, from Early Times to 2000 (Johannesburg: Jacana Media, 2011), p. 85. 5 Based on my oral history interviews with land claimants in Tenbosch, Mpumalanga. 4 DRAFT: Please do not cite or circulate system has recognized their land claims as land rights. Between 1905 and 1913, hundreds of black individuals and syndicates bought land in both urban and rural parts of the Transvaal. As of 1914, the Beaumont and Stubbs Commissions indicate that black individuals or syndicates owned about 27305 morgen (21844 hectares)6 worth of land in the Transvaal, only 0.28% of the total land in that province. Black land buyers owned 8151 morgen (6520 hectares) in the Wakkerstroom district, with the NFA’s purchases making this the largest proportion of black-owned land in any Transvaal district.7 The literature on black land buyers suggests that syndicates financed their purchases through the sale of livestock and crops8, pooling savings from wage labour9, and levies instituted by chiefs (the ‘tribal trust’ regime that Gavin Capps describes in relation to the Bakgatla ba Kgafela is one of the most well-documented examples of this kind of financing).10 These factors all contributed to the funds required for land purchase. In most cases though, even when people did come together as collectives, they took out some kind of credit to buy land. Very few people – in the past, like nowadays – could buy a large property outright in one sum, even if they sold other assets or formed a savings club. Deborah James argues that for much of the 20th century, black South Africans were living under “credit apartheid.”11 During the apartheid period, it was almost impossible for black South Africans to gain access to credit through formal avenues, such as banks. James argues that this led to a proliferation of informal credit practices, in the form of savings groups, stokvels, burial societies, moneylending, shop credit and pyramid schemes.12 However, it seems that there was a window period between 1905 and 1913 in which some formal credit options were open to black South Africans. It is notable that this coincided with black people’s legal right to register property in their own names.
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